Question
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $53,000 Number of employees Depreciation 31,500 Cost of goods sold Advertising 74,500 Net sales Item Drilling Grinding Total Number of employees 2,840 4,260 7,100 Net sales $362,375 $529,625 $892,000 Cost of goods sold $109,500 $182,500 $292,000 The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.) $63,422. $159,000. $600,000. $72,672. $95,722.
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